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Cygnus Gold continues to drill out gold at Bottleneck, shares up 50% since January IPO

Shares in Cygnus are up 50% to $0.30 since their successful January 2018 IPO.
core drilling in action
Further drilling is planned to commence shortly to build on the positive start.

Cygnus Gold Ltd (ASX:CY5) has intersected more high-grade gold confirmed by assays from the final two holes at its Bottleneck prospect within the Stanley Project in Western Australia.

Assay results from the core drilling included 6 metres at 3.27 g/t gold from 157.5 metres depth.

Notably, the intersection was from a hole drilled 250 metres from previously intersected gold mineralisation detailed in late February 2018.

Results show gold extends deeper and over a considerable strike length

These new results show the mineralising system extends deep into the basement continuing over a considerable strike length.

James Merrillees, managing director, said: “These results confirm our view that the very high-grade gold we’ve intersected in core drilling in the weathered zone at Bottleneck is related to nearby high-grade mineralisation in fresh rock.

“These first high-grade gold results in fresh rock are outstanding, but we are at an early stage in understanding the mineralised system at Bottleneck, and further drilling is planned to commence shortly to build on this positive start.”

Cygnus Gold listed on the ASX in January 2018

The company listed on the ASX after a successful initial public offering (IPO) in January 2018 which raised the maximum $6 million by issuing shares priced at $0.20.

Funds raised were earmarked to target the high-grade Bottleneck prospect where drilling commenced soon after IPO.

Aircore and diamond drilling completed

A total of six diamond core holes for 628.7 metres were drilled at Bottleneck.

Cygnus has also completed a 176-hole, 3,374-metre aircore program to test high priority structural targets in the broader Bottleneck area.

First drill results in February 2018 intersected high-grade gold

Results from the first four diamond core holes drilled at Bottleneck Prospect intersected shallow high-grade gold.

Drilling confirmed high-grade gold that was previously documented in shallow aircore drilling by previous explorers at the prospect.

Results included 9.50 metres at 29.20 g/t gold from 36.70 metres and 10.95 metres at 15.10 g/t gold from 24.70 metres.

Backed by resourced-focused funds at IPO

The IPO was endorsed by two renowned cornerstone investors, Resource Capital Fund VI L.P and Southern Cross Capital.

Both funds are well known within the resource investing industry and signed subscription agreements to invest $500,000 each in the IPO.

The Wheatbelt region of Western Australia is underexplored

Cygnus’ projects are in the Wheatbelt region of Western Australia and include both early stage exploration areas through to drill-ready targets.

The Wheatbelt is under-explored for gold, primarily because mining companies have focused on the outcropping, and more readily explored, producing goldfields of Western Australia.

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